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TR-2011-56 RIVERMOOR SOLAR - MAIN STREET }(¢un � 1' � - - --- - - V ----- TR-2011-57 A RESOLUTION ENTERINGINTO A TAX AGREEMENT WITH RIVERMOOR-CITIZENS, LLC FOR A SOLAR DEVELOPMEIVIT PROJECT LOCATED AT 365 MAIN STREET, AGAWAM, MA (SPONSORED BY: MAYOR RICHARD A. COHEN) WHEREAS, Rive rmoor-Citizens, LLC located in the Town of Agawam (the "Town") has entered into a long term lease for the property located at 365 Main Street, Agawam (the "Property"); and WHEREAS, Rivermoor-Citizens, LLC,through its wholly owned subsidiary, Rive rmoo r-Citizens Holyoke, LLC(collectively, "Rive rmoor-Citize ns") intends to develop a photovaltic solar energy project on the Property(the "Project"); and WHEREAS, photovoltaic installations provide communities with reliable and clean energy and reduces greenhouse gas emissions and local reliance on imported energy; and WHEREAS, Rive rm oo r-Citize ns and the Town, under the authority of M.G.L. c. 59, §38H(b), desire to execute a negotiated tax agreement for payment of taxes on the Project in order to otherwise exempt Rive rmoo r-Citizens from the payment of real and personal property taxes for the Project; and WHEREAS, Rive rmoo r-Citize ns and the Town have reached this Tax Agreement as the result orapodi�p- 0. faith negotiations so that the annual payment of taxes shall be the equivalent of the property to I Cn obligations based on full and fair cash valuation of the project; and Cp 1:�;* ,;F- WHEREAS, Rivermoor-Citizens and the Town acknowledge that a comprehensive agreement fixinAnd-P% maintaining mutually acceptable, reasonable, and accurate tax payments for the Project for each Tikal -.0 C-) year from 2012 through 2037 is appropriate and serves their respective interests. tr— NOW THEREFORE, BE IT RESOLVED BY THE AGAWAM TOWN COUNCIL pursuant to M.G.L. c. 59, §38H (b) enter into the attached agreement and authorize the Mayor to execute the tax agreement as attached to this resolution. UO VM)Per 2011, DATED THISO DAY OF PER ORDER OF THE AGAWAM CITY COUNCIL Donal Rheault, President PROVED S 0 FORM AND LEGALITY ce co I-kmd I 1JV, Cc C C.— L Vincent F. Gioscia, City Solicitor ne TAX AGREEMENT MUSHY'S GOLF CENTER WHEREAS, Rivermoor-Citizens, LLC located in the Town of Agawam (the "Town") has entered into a long term lease for the property located at 365 Main Street, Agawam (the "Property"); and WHEREAS, Riven-noor-Citizens, LLC, through its wholly owned subsidiary, Riven-noor- Citizens Agawam, IJX (collectively, "Rivermoor-Citizens") intends to develop a photovaltic solar energy project on the Property (the "Project"); and WHEREAS, Rivermoor-Citizens and the Town, under the authority of M.G.L. c. 59, §38H(b), desire to execute a negotiated tax agreement for payment of taxes on the Project in order to otherwise exempt Rivermoor-Citizens from the payment of real and personal property taxes for the Project; and WHEREAS, Riven-noor-Citizens and the Town have reached this Tax Agreement as the result of good faith negotiations so that the annual payment of taxes shall be the equivalent of the property tax obligations based on full and fair cash valuation of the project; and WHEREAS, Riven-noor-Citizens and the Town acknowledge that a comprehensive agreement fixing and maintaining mutually acceptable, reasonable, and accurate tax payments for the Project for each fiscal year from 2012 through 2037 is appropriate and serves their respective interests. NOW, THEREFORE, Rivermoor-Citizens and the Town agree as follows: 1. The parties acknowledge that this Agreement is fair and beneficial to them because it resolves all tax issues between them with resulting alleviation of economic and financial uncertainty, Moreover, both parties value the tax and economic stability achieved by this Agreement because it will result in steady, predictable and reasonable tax payments for the Project. The parties acknowledge that this Agreement contemplates any increases in real property taxes on the Property that may be assessed solely as a result of the Project. This Agreement shall not otherwise impact the Town's ability to raise or lower real property taxes in the ordinary course of its tax assessment practices. The owner of the Property shall remain responsible for all real property taxes. 2. The amount of real and personal property tax paid in each fiscal year by Riven-noor- Citizens to the City on account of the Project shall be based on an assessed value $282,500, multiplied by the commercial tax rate for that particular fiscal year. For example, the current commercial tax rate for Fiscal Year 2011 is $28.32 per thousand dollars of valuation, so Rivermoor-Citizens shall pay the town $8,000.40 in property taxes. The assessors may allocate the value on which the tax is based between the Project's real property and personal property in their determination of full and fair cash value of each. 884452v2 [For each fiscal year, Rivermoor-Citizens shall make two payments of the tax obligations required by this Agreement on October I"and February I" at the tax rate for the previous fiscal year, and a pro rated payment on May I"based on that fiscal year's tax rate.] 3. This Agreement is entered into in good faith to achieve predictability and economic stability for both parties by establishing reasonable, accurate, and reliable tax agreement payments for Rivermoor-Citizens Project. Accordingly, Rivermoor-Citizens and the Town agree that neither party shall seek to use the fair market values established by this Agreement in any future proceedings regarding the value of Rivermoor-Citizens' property in the Town or in any other proceeding regarding the value of other Riven-noor-Citizens property, except as provided in paragraph 5 of this Agreement. 4. This Agreement shall terminate as of fisc al year 2037 unless both parties agree to extend the Agreement with its current terms, such agreement to be in writing. 5. The Parties have entered into this Agreement only after full and due consideration thereof and with the advice of their counsel. 6. The Parties agree that, if any provision of this Agreement is determined invalid or unenforceable, the entire Agreement shall be invalid and unenforceable. 7. Riven-noor-Citizens, on behalf of itself and any successors to or assigns of its interest the Project, and the Town shall act in good faith to carry out this Agreement and to resolve amicably any disputes or disagreements which may arise hereunder. 8. This Agreement is subject to approval by the City Council of Agawam acting through its Mayor, and its Board of Assessors. 9. This Agreement is full, final and complete expression of the parties' agreement on all real and personal property tax issues respecting all of Rivermoor-Citizens' Project at the Property in the Town of Agawam. Executed this_day of 2011, by the undersigned who represent that they are ftilly and duly authorized to act on behalf of their principals. TOWNOFAGAWAM By Its Mayor, Richard A. Cohen 2 MAYORAL ACTION Received this —day of 2011 from Council Clerk. Signed by Council President this 0?1 day of 2011. APPROVAL OF LEGISLATION By the powers vested in me pursuant to Article 3, Section 3-6 of the Aga am_C��er, as Krn ded, 1 erepb')�approve the passage of the above legislation on this �"-day of rON V 2011. Richard . Cohen, Mayor DISAPPROVAL OF LEGISLATION By the powers vested in me pursuant to Article 3, Section 3-6 of the Agawam Charter, as amended, I hereby veto the passage of the above legislation on this day of 2011 for the following reason(s): Richard A. Cohen, Mayor RETURN OF LEGISLATION TO COUNCIL CLERK Returned to Council Clerk this CR3_)'1--_. dayof Summary of Tax Agreement between Rivermoor-Citizens,LLC and the Town of Agawam L andfldl—Hood Solar Agawam City Council November 15,2011 -Project summM Rivermoor-Citizens,LLC is currently developing a ground-mounted,solar electric generating facility at Mushy's Driving Range(former Grasso Landfill). The system is 1.7 megawatts(MW) in size,large enough to power approximately 200 homes. The electricity will be sold under.a long-term,net metering contract to HP Hood, which abuts the property. This project will also have a larger social benefit by offsetting environmentally harmful coal,oil,and natural gas power plants, A portion of project revenues will support Citizens Energy's charitable programs, such as the heating oil program. Since 2006, Citizens has donated 36,000+gallons of heating oil (267 households)to Agawam residents. Applicabili1y of the Tax Aggeemen The tax agreement will only be applicable to personal property taxes associated with the installation(which includes all of the equipment associated with the solar facility). Additionally,real estate taxes will increase because the property is currently taxed under Chapter 61 (recreational land). The town will receive roll-back taxes and a higher valuation of the property since the land will no longer be taxed under Chapter 61. Therefore, the tax agreement on the personal property is purely additional revenue to the City of Agawam coming from an otherwise undevelopable property(a landfill which can not ever be built upon due to inherent geotechnical conditions of landfill properties). Dollar amount The amount of the tax agreement for personal property taxes will be $8,000 per year.(This will be in addition to the approximately$1,200 per year currently paid in real estate taxes on the land plus an additional $1,800 in additional real estate taxes for land because the property will no longer being taxed under Chapter 6 1,for a total of approximately $3,000.). This amount was calculated by the Town Assessor based on value of the personal property and through an analysis of comparable renewable energy facilities in the region. Economic and Communi1y Benefits of the Development for HP Hood &the Town of Agawam • HP Hood is a Major Employer and Taxpayer in the Town of Agawam • HP Hood is headquartered in Lynnfield,MA. The Agawam plant is Hood's only operatingplant in the Commonwealth, Hood employs over 200 skilled workers at its plant, many of them Agawam residents. Hood is a substantial taxpayer in the Town. Hood has requested that the Town approve the tax plan so that it can move forward with the solar plan and remain operationally efficient for the long run. • Hood will save 15%on its utility cost for the power produced by the solar development on the former Grasso Landfill. Electrical costs are one of the top three cost categories for the plant,along with labor and dairy inputs into the production process. This agreement will also provide additional, stable tax revenue to the Town in addition to the significant utility cost savings for the Town outlined above. • Job Creation During the Six Month Construction Period o Rivermoor-Citizens estimates that fifty skilled construction positions will be created during the construction period. We expect to have a number of construction positions for experienced Agawam residents in the construction industry. • Environmental Leadership and Health of the Agawam Community o The Town of Agawam has the opportunity to take a leadership role in caring for the environment and reducing air pollution from the use of fossil fuel (asthma, children and elderly health problems related to pollutants and particulates in the air, etc.) HP Hood will show strong corporate leadership by offsetting approximately 30%of its electrical usage through power produced by the solar array. Summary of Tax Agreement between Rivermoor-Citizens, LLC and the Town of Agawam Town ofAgawam Solar Agawam City Council November 15,2011 Proiect summM Rivermoor-Citizens,LLC is currently developing a ground-mounted, solar electric generating facility on Route 57 in Agawam, MA. The system is 1.67 megawatts(MW) in size, large enough to power approximately 200 homes annually. The discount of 15%on the electricity produced by the solar asset will be provided under a long-term agreement with the Town of Agawam. The 15%utility discount will benefit the citizens of Agawam through reduced governmental operating costs. From an environmental perspective,the solar asset will reduce the local need for harmful coal, oil, and natural gas power plants, improving local air quality and public health. Additionally, a portion of the revenues from the project will go to support Citizens Energy's charitable programs,such as the heating oil program. Since 2006, Citizens Energy has donated over 36,000 gallons of heating oil (267 households)to Agawam residents. Projects such as this one help support these charitable programs. A Vp I icahi&of the Tax Agreement The tax agreement will only be applicable to personal property taxes associated with the installation (which includes all of the equipment associated with the solar facility). Real estate taxes on the land will continue to be paid in addition to the tax agreement, Therefore,the tax agreement is purely additional revenue to the Town of Agawam coming from an underutilized property. Dollar amount The amount of the tax agreement is$5,000 per year(this will be in addition to the approximately $10,800 per year in real estate taxes). This amount was calculated by the Town Assessor based on value of the personal property and through an analysis of comparable renewable energy facilities in the region. Economic and Community Benefits of the Devel2pment for�the Town of Agawam Utility Cost Savings to the Town of Agawam • Over the initial 20 years of the net metering agreement� which provides a 15%discount on the power produced by the solar asset(2.21 million kWh of annual power production) using the historical 3%annual inflation rate in electrical power rates,the savings to the Town of Agawam on its annual WMECo utility costs is estimated to be$830,000. Over a 25 year period,the savings are estimated to be $1.12 million. • This agreement will provide additional, stable tax revenue to the city in addition to the significant utility cost savings for the Town outlined above. • Job Creation During the Six Month Construction Period o Rivermoor-Citizens estimates that fifty skilled construction positions will be created during the construction period. As was the case with the permitting and engineering phase, in which our lead engineer is an Agawam resident, we expect to have a number of construction positions for experienced Agawam residents in the construction industry. • Environmental Leadership and Health of the Agawam Community o The Town of Agawam has the opportunity to take a leadership role in supporting the development of renewable energy,caring for the environment and reducing air pollution from the use of fossil fuel in its community(asthma,children and elderly health problems related to pollutants and particulates in the air, etc.) TAX AGREEMENT MUSHY'S GOLF CENTER WHEREAS, Rivcrmoor-Citizens, LLC located in the Town of Agawam (the "Town") has entered into a long term lease for the property located at 365 Main Street, Agawarn (the "Property"); and WHEREAS,Rivermoor-Citizens, LLC,through its wholly owned subsidiary, Rivermoor- Citizens Agawam, LLC (collectively, "Rivermoor-Citizens") intends to develop a photovaltic solar energy project on the Property (the "Project"); and WHEREAS, Rivermoor-Citizens and the Town, under the authority of M.G.L. c. 59, §38H(b), desire to execute a negotiated tax agreement for payment of taxes on the Project in order to otherwise exempt Rivermoor-Citizens from the payment of real and personal property taxes for the Project; aqd WHEREAS, Rivermoor-Citizens and the Town have reached this Tax Agreement as the result of good faith negotiations so that the annual payment of taxes shall be the equivalent of the property tax obligations based on full and fair cash valuation of the project; and WHEREAS, Rivermoor-Citizens and the Town acknowledge that a comprehensive agreement fixing and maintaining mutually acceptable, reasonable, and accurate tax payments for the Project for each fiscal year from 2012 through 2037 is appropriate and serves their respective interests. NOW, THEREFORE, Rivermoor-Citizens and the Town agree as follows: 1. The parties acknowledge that this Agreement is fair and beneficial to them because it resolves all tax issues between them with resulting alleviation of economic and financial uncertainty. Moreover, both parties value the tax and economic stability achieved by this Agreement because it will result in steady, predictable and reasonable tax payments for the Project. The parties acknowledge that this Agreement contemplates any increases in real property taxes on the Property that may be assessed solely as a result of the Project. This Agreement shall not otherwise impact the Town's ability to raise or lower real property taxes in the ordinary course of its tax assessment practices. The owner of the Property shall remain responsible for all real property taxes. 2. The amount of real and personal property tax paid in each fiscal year by Rivermoor- Citizens to the City on account of the Project shall be based on an assessed value $282,500, multiplied by the commercial tax rate for that particular fiscal year. For example, the current commercial tax rate for Fiscal Year 2011 is $28.32 per thousand dollars of valuation, so Rivermoor-Citizens shall pay the town $8,000.40 in property taxes. The assessors may allocate the value on which the tax is based between the Project's real property and personal property in their determination of full and fair cash value of each. 884452v2 [For each fiscal year, Rivermoor-Citizens shall make two payments of the tax obligations required by this Agreement on October I" and February Vt at the tax rate for the previous fiscal year, and a pro rated payment on May I" based on that fiscal year's tax rate.] 3. This Agreement is entered into in good faith to achieve predictability and economic stability for both parties by establishing reasonable, accurate, and reliable tax agreement payments for Rivermoor-Citizens Project. Accordingly, Rivermoor-Citizens and the Town agree that neither party shall seek to use the fair market values established by this Agreement in any future proceedings regarding the value of Rivermoor-Citizens' property in the Town or in any other proceeding regarding the value of other Rivermoor-Citizens property, except as provided in paragraph 5 of this Agreement.' 4. This Agreement shall terminate as of fiscal year 2037 unless both parties agree to extend the Agreement with its current terms, such agreement to be in writing. 5. The Parties have entered into this Agreement only after full and due consideration thereof and with the advice of their counsel. 6. The Parties agree that, if any provision of this Agreement is determined invalid or unenforceable, the entire Agreement shall be invalid and unenforceable. 7. Riverm oor-Citizens, on behalf of itself and any successors to or assigns of its interest the Project, and the Town shall act in good faith to carry out this Agreement and to resolve amicably any disputes or disagreements which may arise hereunder. 8. In the event Rivermoor-Citizens, LLC or their successors/assigns or its named subsidiary or its successors/assigns in this agreement files for bankruptcy protection this agreement shall become null and void and any taxes accrued from the date of filing shall be in accordance with Massachusetts General Law and not calculated or governed by this agreement. 9. Rivermoor-Citizens, LLC or their successors/assigns or its named subsidiary or its successors/assigns acknowledge that the Town of Agawam shall bear no cost in returning the site to its original condition. Furthermore, Ri vermoor-Citizens, LLC or their successors/assigns or its named subsidiary orits successors/assigns state that their lease agreement with the property owner sufficiently address this contingency. It is the intent of the parties hereto that this paragraph shall survive should this agreement become null and void pursuant to paragraph (8) eight. 10. This Agreement is subject to approval by the City Council of Agawam acting through its Mayor, and it's Board of Assessors. 11. This Agreement is full, final and complete expression of the parties' agreement on all real and personal property tax issues respecting all of Rivermoor-Citizens' Project at the Property in the Town of Agawam. 2 Executed this—day of 2011, by the undersigned who represent that they are fully and duly authorized to act on behalf of their principals. TOWNOFAGAWAM By Its Mayor, Richard A. Cohen Rivermoor-Citizens Agawam, LLC By 3 Other Tax Agreements '�ROOS-004 AnOO5100K NW NE Mars Hill, ME Mars Hill Wind Lowell, VT $3.88/MWh Kingdom Community Wind SOYEA5LT $2.59/MWh DENCESCOT RSCA-AQUIS N mENCE5 IRAIII, SOWER�ET C(31 WA5HIH5TON ISLE I DRUM- coos I ILMADILLE I-ANCOCK IITTEN- LEDY WALDO OEM KENNEBEC ASHINGTO MFORE W.T DESERT ISL. ANDRO CCGGII L NCOLU ,rinisnm HROPJF.F GR4FTnN tip Hancock MA rnv Floridal MA SAGADAiinc Berkshire Wind �,UILU Hoosac Wind $3.11/MWh $4.33/MWh Agawam Projects: 1111-000RO CHESHIRE FFWV4,KUN ESSEX Agawam, MA Mushy's Landfill WGIRCIESIEFI LIDDLES,3E -HIRE SUFFOU: KnK, ? C — SHInE PDEN 5,-rORF(ILK $3.76/MWh PF11VI- ME- r'.Y' Agawam, MA TOL- 0 E NICE I CIL 11401.11H Holvoke, MA TFOPD KEVI all I dl�LE. Shoemaker Lane Holyoke Solar �vl LONDUk $2.50/MWh $4.00/MWh BRIII TOL __J 0 D L 0 CK I"L, TR-2011-57 A RESOLUTION ENTERINGINTO A TAX AGREEMENT WITH RIVERMOOR-CITIZENS, LLC FOR A SOLAR DEVELOPM EMT PROJECT LOCATED AT 365 MAIN STREET, AGAWAM, MA (SPONSORED BY: MAYOR RICHARD A. COHEN) WHEREAS, Rive rmoor-Citize ns, LLC located in the Town of Agawam (the "Town") has entered into a long term lease for the property located at 365 Main Street,Agawam (the "Property"); and WHEREAS, Rive rmoor-Citizens, LLC,through its wholly owned subsidiary, Rivermoor-Citizens Holyoke, LLC(collectively, "Rive rm o o r-Citizen s") intends to develop a photovaltic solar energy project on the Property(the "Project"); and WHEREAS, photovoltaic installations provide communities with reliable and clean energy and reduces greenhouse gas emissions and local reliance on imported energy; and WHEREAS, Rivermoor-Citizens and the Town, under the authority of M.G.L. c. 59, §38H(b), desire to execute a negotiated tax agreement for payment of taxes on the Project in order to otherwise exempt Rivermoor-Citizens from the payment of real and personal property taxes for the Project; and WHEREAS, Rive rmoor-Citizens and the Town have reached this Tax Agreement as the result of good faith negotiations so that the annual payment of taxes shall be the equivalent of the property tax obligations based on full and fair cash valuation of the project; and WHEREAS, Rive rmoor-Citizens and the Town acknowledge that a comprehensive agreement fixing and maintaining mutually acceptable, reasonable, and accurate tax payments for the Project for each fiscal year from 2012 through 2037 is appropriate and serves their respective interests. NOW THEREFORE, BE IT RESOLVED BY THE AGAWAM TOWN COUNCIL pursuant to M.G.L. c. 59, §38H(b) enter into the attached agreement and authorize the Mayor to.execute the tax agreement as attached to this resolution. DATED THIS DAY OF 2011. PER ORDER OF THE AGAWAM CITY COUNCIL Donald M. Rheault, President C: PR ED S 0 FORM AND LEGALITY > Vincent F. Gioscia, City Solicitor TAX AGREEMENT MUSHY'S GOLF CENTER WHEREAS, Rivermoor-Citizens, LLC located in the Town of Agawam (the"Town") has entered into a long term lease for the property located at 365 Main Street, Agawam (the "Property"); and WHEREAS, Ri ven-noor-Citizens, LLC, through its wholly owned subsidiary, Riven-noor- Citizens Agawam, I-IC (collectively, "Riverrnoor-Citizens") intends to develop a photovaltic solar energy project on the Property (the "Project"); and WHEREAS, Rivermoor-Citizens and the Town, under the authority of M.G.L. c. 59, §38H(b), desire to execute a negotiated tax agreement for payment of taxes on the Project in order to otherwise exempt Rivermoor-Citizens from the payment of real and personal property taxes for the Project; and WHEREAS, Rivermoor-Citizens and the Town have reached this Tax Agreement as the result of good faith negotiations so that the annual payment of taxes shall be the equivalent of the property tax obligations based on full and fair cash valuation of the project; and WHEREAS, Rivermoor-Citizens and the Town acknowledge that a comprehensive agreement fixing and maintaining mutually acceptable, reasonable, and accurate tax payments for the Project for each fiscal year from 2012 through 2037-is appropriate and serves their respective interests. NOW, THEREFORE, Rivermoor-Citizens and the Town agree as follows: 1. The parties acknowledge that this Agreement is fair and beneficial to them because it resolves all tax issu6s between them with resulting alleviation of economic and financial uncertainty. Moreover, both parties value the tax and economic stability achieved by this Agreement because it will result in steady, predictable and reasonable tax payments for the Project. The par-ties acknowledge that this Agreement contemplates any increases in real property taxes on the Property that may be assessed solely as a result of the Project. This Agreement shall not otherwise impact the Town's ability to raise or lower real property taxes in the ordinary course of its tax assessment practices. The owner of the Property shall remain responsible for all real property taxes. 2. The amount of real and personal property tax paid in each fiscal year by Rivermoor- Citizens to the City on account of the Project shall be based on an assessed value $282,500, multiplied by the commercial tax rate for that particular fiscal year. For example, the current commercial tax rate for Fiscal Year 2011 is $28.32 per thousand dollars of valuation, so Rivermoor-Citizens shall pay the town $8,000.40 in property taxes. The assessors may allocate the value on which the tax is based between the Project's real property and personal property in their determination of full and fair cash value of each. 884452v2 [For each fiscal year, Rivermoor-Citizens shall make two payments of the tax obligations required by this Agreement on October I" and February I't at the tax rate for the previous fiscal year, and a pro rated payment on May I" based on that fiscal year's tax rate.] 3. This Agreement is entered into in good faith to achieve predictability and economic stability for both parties by establishing reasonable, accurate, and reliable tax agreement payments for Rivermoor-Citizens Project. Accordingly, Riven-noor-Citizens and the Town agree that neither party shall seek to use the fair market values established by this Agreement in any future proceedings regarding the value of Rivermoor-Citizens' property in the Town or in any other proceeding regarding the value of other Rivermoor-Citizens property, except as provided in paragraph 5 of this Agreement. 4. This Agreement shall ten-ninate as of fiscal year 2037 unless both parties agree to extend the Agreement with its current terms, such agreement to be in wfiting. 5. The Parties have entered into this Agreement only after full and due consideration thereof and with the advice of their counsel. 6. The Parties agree that, if any provision of this Agreement is determined invalid or unenforceable, the entire Agreement shall be invalid and unenforceable. 7. Rivermoor-Citizens, on behalf of itself and any successors to or assigns of its interest the Project, and the Town shall act in good faith to carry out this Agreement and to resolve amicably any disputes or disagreements which may arise hereunder. 8. This Agreement is subject to approval by the City Council of Agawam acting through its Mayor, and its Board of Assessors. 9. This Agreement is full, final and complete expression of the parties' agreement on all real and personal property tax issues respecting all of Rivermoor-Citizens' Project at the Property in the Town of Agawam. Executed this' day of 2011, by the undersigned who represent that they are fully and duly authorized to act on behalf of their principals. TOWNOFAGAWAM By Its Mayor, Richard A. Cohen 2 C-13 C5 TO: Agawam City Council I r1r FROM: Mayor Richard A. Cohen DATE: November 3, 2011 SUBJECT: Tax Agreements with Rivermoor-Citizens, LLC I Enclosed please find two resolutions for New Business for the Council's November 9, 2011 meeting. The resolutions concern proposed Tax Agreements with Rivermoor- Citizens, LLC for the construction of two solar powered structures facilities in Agawam. The proposed location for one facility is 912 Shoemaker Lane, on a 13-acre parcel of vacant land owned by Westmass Area Development Corp, The proposed facility, when constructed, will provide power to the Town of Agawam at a 15% discounted rate. This will save the town approximately $40,000 on average per year of the agreement. The excess power generated will be returned to the electricity grid for sale by Rivermoor- Citizens, LLC. The proposed location for the other facility is 365 Main Street, on a 20.75-acrc parcel of land owned by Mushy's Golf Center, LLC. The proposed facility, when constructed, will provide power to HP Hood Inc located at 233 Main Street at a discounted rate, with the excess power generated returned to the electricity grid for sale by Rivermoor-Citizens, LLC. This savings will help keep people employed in difficult times and help to reduce HP Hood's costs. Further documentation regarding the specifics of each proposed facility will be provided prior to the November 21, 2011 Council Meeting. 25 Year Benefit to Agawam $2,000,000 $378,553 TOTAL Ip885..045 Town will receive over $1.5 million in ADDITIONAL taxes from these parcels $1,500..000 Town Savings on Electric Bill* $1,F000P000 Tax Agreement, Landfill $500P000 Tax Agreement, Shoemaker S27.117 Real Estate Tax.. Landfill Real Estate Tax, Shoemaker $0 Without Solar With Solar *ASsUrnes town will ask to extend contract in years 21-25